Another Store Leaves.. TJ Maxx

The list continues to grow. TJ Maxx will be moving from West Dundee to Randall Road. Their new location will be next to Toys R Us, another store that we lost recently.

General Growth Misses Deadline

AP

General Growth shares fall after missed deadlineTuesday December 16, 9:51 am ET

General Growth shares fall after missing debt repayment deadline, ratings downgrade
WASHINGTON (AP) -- Shares of troubled shopping mall owner General Growth Properties Inc. dropped Tuesday after the company missed a crucial deadline to repay $900 million in debt and saw its debt ratings downgraded further into junk status.
Its stock shed 15 cents, or 8.2 percent, to $1.70 in morning trading.
Credit rating agency Moody's Investors Service on Monday downgraded the debt ratings for Chicago-based General Growth, which said earlier in the day it is still negotiating for an extension on the maturity date mortgage loans for two Las Vegas malls.
After General Growth's announcement, Moody's pushed the debt ratings for General Growth and its subsidiaries further into junk bond status. Both senior secured and senior unsecured debt were downgraded to Ca, two notches above default from Caa2. Moody's said the ratings "remain on review for possible downgrade."
Earlier this month, Chicago-based General Growth received a two-week extension on the loans for two Las Vegas properties, but has yet to receive another extension.
Moody's said the failure to repay the debt "will most likely lead to an imminent acceleration" of debt payments on bonds issued by The Rouse Company, a shopping center owner acquired by General Growth in 2004.
The country's second-largest mall owner is saddled with a huge debt it acquired during the real estate market's boom years when it aggressively bought up assets. Refinancing that debt has proven difficult amid a global credit crunch.
General Growth has a stake in more than 200 shopping malls in 44 states

General Growth in Debt Talks

General Growth says still in debt talks

Friday December 12, 10:25 am ET By Alan Zibel, AP Real Estate Writer

General Growth Properties says still in talks to extend $900 million debt repayment deadline
WASHINGTON (AP) -- Troubled mall owner General Growth Properties, trying to stave off bankruptcy, said it is still trying to negotiate an extension on $900 million in debt that is due to be repaid Friday, but warned there can be "no assurance" it will get a reprieve.
Investors, however, appeared optimistic that bankruptcy would be avoided as shares rose 37 cents, or 25 percent, to $1.81 in morning trading.
The mortgages cover two Las Vegas malls, Fashion Show and Palazzo. Earlier this month, Chicago-based General Growth received a two-week extension on the loans.
General Growth Properties Inc. also said in a prepared statement issued that it refinanced a separate $896 million worth of loans, retiring a $58 million bond that matured Thursday and $814 million of debt scheduled to mature next year.
Chicago-based General Growth, the nation's second-largest shopping mall owner, has been hit hard by the credit crunch, as it piled up a staggering debt load during the real estate market's boom years. Analysts are unsure whether new managers, installed in late October, will be able to keep the company afloat as the recession drags on and U.S. retailers struggle. The company last month hired law firm Sidley Austin as an adviser.
General Growth has a stake in more than 200 shopping malls in 44 states. It is trying to sell its Las Vegas locations.
Shares of General Growth have lost 95 percent of their value over the past six months.
Last month, the company reported disappointing third-quarter results and cut its year-end forecast, weeks after the mall owner's board removed its chief executive, president and chief financial officer.
Their ouster came after the company disclosed that former CEO John Bucksbaum's family trust provided $90 million in personal loans to cover margin debt for the former chief financial officer and president.

General Growth Default Imminent

AP

Fitch says General Growth's default is imminentTuesday December 9, 3:01 pm ET

Fitch cuts ratings on mall owner General Growth Properties, seeing imminent default

NEW YORK (AP) -- Fitch Ratings downgraded General Growth Properties Inc.'s credit ratings Tuesday, saying default may be imminent for the shopping mall owner.
Fitch noted General Growth's recent move to extend the amount of time it has to repay debt, and said it thinks the company may need to restructure its debt to avoid bankruptcy. Fitch considers a distressed debt swap, in which a company exchanges its debt for new bonds at a heavily discounted rate, to essentially be a default.
Fitch also said conditions in real estate debt capital markets are hurting General Growth's ability to raise money to repay about $600 million in 2009 maturing unsecured debt.
As one of the nation's largest shopping mall owners, General Growth has been hit hard by the deteriorating U.S. economy and problems at struggling retailers. It also has taken on massive amounts of debt -- last month in a regulatory filing, General Growth said nearly $3.1 billion worth of debt will come due next year.
Earlier this month, General Growth reached an interim agreement to extend the time it has to pay back $58 million in notes to Thursday, just days after the Chicago-based real estate investment trust got a two-week reprieve to pay off $900 million in mortgages.
Fitch downgraded the issuer default rating to "C," it's lowest junk rating, from "B" for General Growth Properties Inc., GGP Limited Partnership and unit The Rouse Co. Fitch also downgraded the revolving credit facility, term loan and exchangeable senior notes ratings for GGP Limited Partnership to "CC/RR5" from "B-/RR5."
General Growth remains on "negative watch," meaning further downgrades are possible.
Last month, the company reported disappointing third-quarter results and cut its year-end forecast, weeks after the mall owner's board removed its chief executive, president and chief financial officer. Their ouster came after the company disclosed that former CEO John Bucksbaum's family trust provided $90 million in personal loans to cover margin debt for the former CFO and president.
New management has warned that crushing debt combined with the declining economy bring the company's viability into question.
Shares of General Growth rose 3 cents to $1.58 in afternoon trading.

General Growth Properties in Trouble

Dundee Neighbor Jean Van Gaston emails in with this update:

Five Stocks That Look Completely Worthless
Matthew Coffina
Wednesday
November 12, 2008, 7:00 am EST

General Growth Properties (NYSE:GGP - News)From the Analyst Report:
"Punch-drunk on easy credit, retail real estate investment trust (REIT) General
Growth Properties is now staggering under the weight of its massive debt load.
Raising capital or finding buyers for its commercial real estate assets may be
difficult in the current credit-constrained environment, so we think it's likely
that General Growth's equity value will fall to $0."

Yikes.

So General Growth's bad decision making is putting our community in jeopardy. It's time our community looks to the future, to smart growth decisions that will never hold us hostage to this kind of incompetence again.

Updates

Freinds,

Thank you for checking in on the website. We receive a lot of questions about the lawsuit some families have filed against the Village and Wal-Mart, asking for updates and more information. As it is an on-going legal proceeding, unfortunately we can't really comment too much on it except to say that it is moving forward and we're confident in our case.

People also ask, "How are you paying for it?" We were thankful to find attorneys who represent families and homeowners and understand the limitations of what we, as opposed to megacorporations like Wal-Mart or General Growth Properties, can afford. By sticking together and working together we have been able to stick up for the rule of law and demand that our argument be given a fair hearing--when it wasn't by the Village. It is sad that it had to come to that.

People also ask, "Who are the Dundee Neighbors?" There are a handful of families that got the ball-rolling, but during the Wal-Mart hearings, hundreds of families signed petitions and joined email alert lists in support of our vision of an open government and smart growth policies.

So don't listen to the rumor mongerings and slanderers out there who, out of ideas, are once again falling back on the same tired "NIMBY" argument they used during the Wal-Mart issue. Dundee Neighbors is made up of families with an interest in smart growth and open government issues all over the Village--in the old Dundee, in Tartans Glens, south of 72, you name it. We have knocked doors and talked to folks in every part of town.

That's who we are.

We are all volunteers, not professionals. We're learning as we go, and giving of our spare time to bring some accountability to local government--we'll try to more regularly post here to keep you all updated, and encourage you to engage in dialogue in the comments.

Thank you for visiting! Check back often.

Election Results: Real Estate Tansfer Tax Fails

The referendum on the proposed real estate transfer tax has failed by a nearly two-to-one margin. The wisdom of the people of West Dundee shines! Now we need to harness that wisdom to move our Village in a new direction.

From the Courier-News:

“It’s always a tough sell to raise a tax, but we wanted to let the voters
decide,” Village President Larry Keller said. He said the transfer tax would
have been paid only by newcomers and business people, because any home being
bought by somebody who already lived in West Dundee would have been excluded
from the tax.

For the record, President Keller didn't just "want to" let the voter's decide the real estate transfer tax requires a popular vote.

In other news,

Nominating petition forms for the village president and three open trustee
positions in West Dundee are available at West Dundee Village Hall, 102 S.
Second St.

Dundee Neighbors Monthly Meeting!

Friends and Neighbors,

Our block party was a big success--and the question we were most asked was, "What can I do to help?"

The first step is to discuss with each other our vision for the future of West Dundee. We are all Dundee Neighbors!

So join Dundee Neighbors for our village-wide kick-off meeting. We can only succeed if we work together. So this meeting is an opportunity for us all to get together so we can all work together!

What: Dundee Neighbors Monthly Meeting
Where: R Bar's upstairs meeting room (101 W Main St).
When: Tuesday, October 21st, 7:00p.m.
*We are proud to patronize a local business that stood with us when we opposed Wal-Mart.

*Sorry, we're all on our own for food and drink!*

RSVP by commenting or e-mailing, and please, tell your friends and neighbors!

Dundee Neighbors Block Party - A Success!

Thank you to everybody who came out for our block party last Saturday. Great times and conversation, about the future of our community, were had by all.

E. Dundee Store Closing -- What a Surprise!

Why are we doing business with these people? This is unbelievable.

During the West Dundee Supercenter fight, Wal-Mart refused to confirm what they were going to do with the old store if they opened the new one. As if they weren't sure. Now that they got their approval a week and a half ago, suddenly they're announcing closure of the disgusting East Dundee store.

What dishonest brokers and bad neighbors.

Wal-Mart officials have confirmed that the world's largest retailer will
close its East Dundee store once the company opens a Supercenter in neighboring
West Dundee.

Though East Dundee officials and residents had speculated on the store's
demise for months, Wal-Mart had not previously given definitive word that it
would shutter the store that has stood on Route 25 for the better part of two
decades.

But village officials said they were told Friday that their largest sales
tax generator would be moving out of town.

"They have now taken the official position that they are going to leave
East Dundee," Village President Dan O'Leary said. "It had been the case where
they had been hesitant to give us a definitive answer."

Though Wal-Mart did not give a specific timeline, O'Leary believes it would
take at least a year for the West Dundee store to open.

Stabbings at Spring Hill Mall

What is General Growth Properties doing over there? Are they taking care of that property?

It is unbelievable that we are being asked to accept a known crime risk in the form of a 24-hour Supercenter in order to help GGP (the "gem" of our village, apparently) when they can't even keep their supposedly "high-end" mall safe from stabbings.

Geez.

Four Teens Injured

Four Cited For Fighting

Sigh.

Dundee Neighbors Families File Complaint Against Village, Wal-Mart

Dear Friends and Dundee Neighbors,

Last Friday, Dundee Neighbors filed a formal complaint against the Village in regards to the decision made on June 16th to grant a Special Use for a Planned Unit Development and Variances for the Wal-Mart Supercenter.

This decision was not made lightly and due diligence was put into making sure that all options were considered. We are moving forward with this complaint to send a message, that development decisions have a real personal, financial, and social impact on communities, and shouldn't be treated like a business decision made by a closed club. The entire Wal-Mart development process began shrouded in secrecy and was kept private as possible for as long as possible, and then rushed through to avoid too much community participation. When we raised these concerns to Trustees, we were advised to take legal action.

We don't relish this decision, but we are not apologetic for it, either. The fact is that if the Village had acted responsibly and given over more time for review of the proposal by independent experts, we would not have had to take this critical step. Dundee Neighbors is planning a series of community events over the next few months to bring the residents and homeowners of West Dundee together to discuss a new direction for this village. We thank you for your continuing support and encourage you to communicate with each other and with us regarding how we can move this village in a positive new direction.

Your Friends

The Dundee Neighbors

I thought the WM was supposed to save us from tax increases?

Yet, all potential tax increases are on the table. Tut, tut.

West Dundee will take tax question to voters

West Dundee voters will decide Nov. 4 the fate of a proposed real estate transfer tax aimed at offsetting anticipated budget shortfalls, village trustees decided this week.
The question will ask voters whether village should impose a new tax on the purchaser of a home or commercial property in West Dundee.
The tax would be set at $5 per $1,000 of the property's sale price, meaning the buyer of a $250,000 home would pay $1,250.
Village officials say the tax would recover part of the village's anticipated $350,000 budget shortfall created by dwindling sales tax revenue and development inactivity.
Over the last five years, village revenues from commercial and residential development have tumbled almost half a million dollars per year, said Village Manager Joe Cavallaro.
Cavallaro said general sales tax revenues also fell from a high of $3.5 million in 2002 to $2.92 million for the 2007-2008 fiscal year. If voters support the measure, village staff estimate the real estate transfer tax would generate about $200,000 annually.


My favorite reader comment:

posted by parts on Thu Sep 04, 2008 12:23 PM
This is my understanding of
this latest grasp at straws effort by our Village. This is the only tax that
they must take to the voters for approval. I feel that they have all intentions
of bringing those "user fees" such as trash collection, utility fees and other
such items our way in the near future. If they were able to pass this without
any input, it would have been done already. Anyone who votes for this should
really have their head examined. In this real estate market the seller will have
to eat this cost as well-- no buyer will agree to this. More taxes are right
around the corner so do not vote this in. The town is strapped for cash and they
will be doing anything they can to repair this huge hole of lost funds.

Village Approves Wal-Mart Plat and Plan

On Tuesday, the Village Board voted to approve the final plat and plan. A lack of fiscal discipline and a greater lack of imagination has gotten us here, folks.

Well, that's never the end of it. We don't have to accept the bad decision resulting from a bad process.

West Dundee OKs Wal-Mart


West Dundee trustees approved a final plan to develop a 30-acre site on the perimeter of Spring Hill Mall into a Wal-Mart Supercenter.

The village board on Tuesday unanimously backed the final plat, which divides the parcel into individual lots and outlines the developer's plan for the site.

Wal-Mart, the world's largest retailer, proposes a 186,000-square-foot super store at the corner of Huntley Road and Elm Avenue. Wal-Mart's proposed store will include a general merchandise section and full-service grocery store, a garden center and a drive-through pharmacy.
After two months of public hearings, village board meetings, commission meetings and protests, several changes were made to Wal-Mart's plan.

"Wal-Mart has modified the plan to take into account many - or all - of the requests the planning and zoning commission made, from the appearance review commission, from public comments and from the board of trustees," said Trustee Norm Osth.

Those requests included lowering the height of the light posts at the rear of the property to reduce the amount of light leaking into the adjacent subdivision, increasing the height of the berm separating the retailer and residents and also reducing the size of monument signs.

"We are in substantial conformance with the village's standards," said Rob Gamruth, Wal-Mart's counsel for land use and zoning.

Community Development Director Cathleen Tymoszenko said the final engineering of the development is "very, very close to being finalized."

Though dozens of residents have spoken out against the retailer's proposal, just a handful were in attendance Tuesday.

Residents say the development, which would occupy a parcel of land first zoned for a Meijer store in 2000, does not suit the community's image and would increase traffic, as well as crime.
Furthermore, residents said the village should not count on the retailer to increase revenue as Spring Hill Mall flails.

Now that the village has approved the final plat, Gamruth said the developer would likely submit applications for building permits "fairly shortly," but did not have an exact time frame.

The Dundee Neighbors are Still Here--and Growing!

Friends,

The Dundee Neighbors have not disappeared--in fact, we're growing!

Obviously, we're dissatisfied with the behavior of the Village during the Wal-Mart issue. When people face possible devastation of their home values, degradation of the community character, and a seriously new direction in planning, the process should be more open then a notice and, two months later, a 24-Hour, 200,000 square foot Supercenter and 30 acres of asphalt. 

No matter how they try to spin it, that is not an open process. We, the residents who will be most impacted, were left scrambling for time to have the materials reviewed, to retain an attorney, and spent literally hundreds of hours making sure the entire village was kept in the know.

That is not an open process and, frankly, the fact that the Village felt no need to inform us that this massive development was coming in before the legally required notice date demonstrates that they knew we wouldn't be happy, and wanted to avoid involving us. Shameful.

But that's not why we're continuing on--we believe in our community. The outpouring of support from every part of the Village has made it clear that there IS support for a new vision and direction for our wonderful little town. 

So we invite you to post a comment, or send an email, letting us know about YOUR ideas for the future of West Dundee--and the kinds of policies YOU would like to see.

Tell us West Dundee--what is on your mind?

Your Friends

The Dundee Neighbors

Board Approves Wal-Mart, Options Available

Hello friends and neighbors!

Obviously, we are not happy about this:

WEST DUNDEE -- Wal-Mart is coming to town.The village board voted unanimously
Monday night for the special use permits and variations which would allow the
retailer to build a 186,000-square-foot super store on 27.5 acres off Huntley
Road just north of Spring Hill Mall.

But, we continue on. Wal-Mart is NOT coming to town. Please get in touch with us to get more information on our continued effort to make sure the rule of law is applied, the people's will is respected, and our community character is protected. This story tells it better:

Opponents of a Wal-Mart in West Dundee say they are not giving up their fight.

Monday night, the village board voted unanimously in favor of a
Wal-Mart supercenter to be built at Huntley Road and Elm Avenue.
A crowd opposed to the construction rallied at the meeting but was unsuccessful in changing the minds of board members.
The opponents admit they are disappointed but say they plan to pursue every option available to them.
(Copyright ©2008 WLS-TV/DT. All Rights Reserved.)

Dundee Neighbors In The News

So, the Dundee Neighbors have been out pounding the pavement for weeks.

We've probably knocked on your door.

Have we been trying to scare people, telling horror stories about big bad Wal-Mart?

Those of you we've spoken to know that isn't the case at all.

What we've been talking about was fairness. The rule of law. Applying standards. And our elected officials listening to us, rather than lecturing us like we're children.

Well, all that shoe leather work got us some media attention.

Here are the stories from last night:
Daily Herald
Courier News
Chicago Tribune.

Here is a Channel 7 ABC News piece:

http://abclocal.go.com/wls/story?section=news/local&id=6143186

And we're not done yet.

What Are They Thinking!?

The Village Board convened a "Committee of the Whole" meeting last night to hear public comment in advance of a Board vote.

We hoped they wouldn't move to a vote immediately--we'd heard from some Trustees that they hadn't seen any of the pertinent information as of last weekend, and there are thousands of pages of documentation to review--but Village Board President Larry Keller said that they couldn't "talk forever" and that it was time for a vote.

Forget talking forever--how about one minute? The Board had no questions for Wal-Mart and discussed nothing among themselves. Forgive us if that doesn't stink of a done deal.

President Keller also told West Dundee to forget their concerns--after all, he has to live across the street from a Starbucks.

The Board of Trustees has been led to believe by some party that they are "powerless", that they must approve this proposal, or else Wal-Mart will come in no matter what because the property is zoned correctly.

Well, no. If they truly care about West Dundee and are truly representing the people, and not Wal-Mart, then there is plenty they can do.

Wal-Mart is requesting a Special Use for a Garden Center and outdoor sales. They do not meet the standard for a Special Use, which are:

1. The establishment, maintenance or operation of the special use will not be
detrimental to or endanger the public health, safety, morals, comfort or general
welfare.
2. The special use will not be injurious to the use and enjoyment
of other property in the immediate vicinity for the purposes already permitted
nor substantially diminish property values within the neighborhood.
3. The
establishment of the special use will not impede the normal and orderly
development and improvement of the surrounding property for uses permitted in
the district.

Wal-Mart is requesting a Special Use to build a "planned unit development" (a multi-piece development, in other words). They fail to meet those standards as well.

The Village can (and should) deny this petition.

It is irresponsible to leave a property with such a high zoning as B-2 with no intended user.

That is handing a black check to developers.

So when you call the Village (Ph: 847.551.3800) to tell them you oppose this development and demand a "No!" vote, don't be fooled.


There you go, Mr. Keller. "Problem" solved.

Good Morning, West Dundee!

Good thing Wal-Mart didn't bother with an audibility study of truck noise, including idling trucks. They may have found something disconcerting about their injuring the use and enjoyment of surrounding properties.

Good thing Village Staff has so consistently made sure nobody asked Wal-Mart any questions that were too tough--God forbid they should have to, you know, obey the law.

This video was taken on May 30th at the East Dundee store.

What happened to your magical silent trucks, Mr. Scott?

Appearance Review Commission Hearing Last Night

The Herald covered it.

A group opposing the proposed Wal-Mart SuperCenter in West Dundee may be taking on the world's largest retailer, but members are making sure their voices are heard.

At every opportunity, members of Dundee Neighbors -- a coalition of more than 500 local residents -- are showing up and vocalizing their opposition to the proposed 186,000 square foot retail center at the corner of Huntley Road and Elm Avenue.

At least 25 people attended the village's Appearance Review Commission meeting Tuesday for Wal-Mart's final presentation regarding landscaping, elevation, signage and lighting site plans.

Keep them coming in

Since the members of Dundee Neighbors took to the streets less than a month ago, several hundred--you read that right, several hundred--have signed up to join the group in our mission to bring smart, sustainable development to West Dundee--not just short-sighted tax revenue stop-gaps.

Keep them coming in. They want to paint Dundee Neighbors as a NIMBY throwaway, but we know the truth, that hundreds of residents from every part of West Dundee support the rights of residents to have a meaningful say in our Village's future, not just a dog-and-pony show that can get shut down by high-priced slick attorneys.

See you on the pavement!

Welcome to Dundee Neighbors On-Line!

Welcome, friends!

Dundee Neighbors has created this website to keep you informed about development issues in West Dundee and the Dundee area.

Our primary effort right now is to monitor the currently proposed 186,000 square foot, 24-Hour Wal-Mart Supercenter being wedged into a residential community where it does not belong.

You may have read about the Planning and Zoning Commission Hearing on Tuesday. Although the P&Z Commission "recommended" the project, it is by no means over yet. Only the Board can make a final decision. And if they decide wrongly--if they approve a project that clearly fails to meet the standards for Special Uses and Variances--there are means beyond that.

At the Planning & Zoning Commission Hearing, we requested a continuation of 30 days to allow some engineers we have retained to review Wal-Mart's proposed storm water plan and their traffic study, which was conducted by their "preferred contractor" for traffic studies, KLOA.

When we--generously, we feel--made this offer to have an independent review at our own expense, in the interest of objectivity, you should have seen Wal-Mart's attorney spring up and "strenuously object."

What are they trying to hide from residents and the Board of Trustees? Inquiring minds would like to know why our offer to have an independent review so terrified Wal-Mart's attorney.

We think the Board should want to know, too. 

The Village staff and Wal-Mart have implied that this has been a completely open process which has encouraged public participation.

But of course, Wal-Mart did not reveal its plans to the public until literally the last possible moment, when the law requires them to disclose their plan.

They didn't call a single resident.

They didn't meet with a single resident.

They sent no letters, made no phone calls, held no forums, made absolutely no effort.

Staff, which has been in negotiations for years, met with no one. Made no calls. Had no meetings. Sent no fliers. 

Did not include it in the Village Newsletter. Did not solicit public input.

In other words, they hid it until they couldn't any longer, and when we requested a reasonable amount of time to review the petitioner's materials, we were ignored.

When Target was coming to town, they put a big old sign on the property: "Coming Soon! Target!" Wal-Mart hid behind the wall of "proprietary information", too arrogant to bother with us lowly taxpayers.

When we asked for more time to review materials that have been released to us only in drips for the last month, Wal-Mart's attorney sprang to his feet and quaked in his boots. 

The public hearing began on 4/28. Less than a month later, it was closed. It took Wal-Mart years to bring this project together: we can't get 30 days to review it?

That is an open process?

We were told that the public hearing process was the opportunity to comment and present evidence--yet our due process was violated when our attempt to reasonably contribute to the process by locating expert witnesses and having them review the petitioner's testimony, and to testify as to possible problems with it, was shouted down by a slick attorney from a multi-billion dollar corporation. Apparently, they don't have the time to waste on small-town folks who want to know if their backyards will be flooded with greasy parking lot water, if reckless driving will increase on a residential road, if our nice family park is going to turn into a pit of Wal-Mart's carelessly strewn garbage.

That is a good neighbor?

The Trustees have some real thinking to do, about what kind of "partner" they're inviting into the Village. 

And our due process will not be violated, and we will be heard.

So check back often! We'll keep you apprised.

Your friends,

The Dundee Neighbors

test

test